This paper presents the concept of a compensator of voltage sage/swell installed in connection terminals of small industrial plant or selected loads. This compensator based on a three-phase hybrid transformer with matrix converter. Presented in this paper is an approach for obtaining continuous control of the voltage magnitude and phase shift using a conventional transformer with two windings and power electronics converter, referred to as a matrix converter. By adjustment of these voltage parameters we can reduce the effects of overvoltage and voltage sags. Proposition of a close loop control algorithm are discussed in this paper.